Thousands of Americans could soon find themselves without a place to live. With the expiration of the affordable housing tax credits, experts estimate that 223,000 families will not be able to keep up with the rising cost of rent. This could lead to a significant increase in homelessness across the country, exacerbating an already critical issue. The lack of affordable housing options may force many families to make difficult decisions and potentially face eviction.
Developers received credits from the government in 1986 in return for maintaining affordable rentals for low-income families. Under the LIHTC program, 3.6 million housing units have been constructed since then.
However, since significant improvement occurred in the 1990s, the benefits are now nearing their conclusion after a 30-year span. Although the situation is difficult, local and federal authorities are searching for solutions.
The IRS only awards new tax credits depending on a city’s population, so things won’t change for the majority of individuals impacted. Nevertheless, this could be a solution.
The second choice is for non-profits or local government agencies to purchase housing that is set to expire. It will be challenging to get the funds for this, though. One potential solution is for non-profits or local government agencies to purchase housing that is set to expire, although securing the necessary funds may prove challenging. Another option could involve exploring alternative sources of funding or partnerships to address the issue of expiring tax credits and affordable housing.
